Property Valuation
What is a 'review appraisal' and under what circumstances might a Pennsylvania lender order one?
AAn appraisal commissioned to review a prior tax assessment decision
BA second opinion appraisal ordered when the original appraisal is disputed, doesn't support the purchase price, or raises quality concerns✓ Correct
CThe mandatory annual review of PHFA-financed properties
DA PREC-required review before a licensee may use a property's appraised value in advertising
Explanation
A review appraisal (or appraisal review) is a second analysis commissioned to evaluate an original appraisal. Pennsylvania lenders may order review appraisals when: the original appraisal value doesn't support the purchase price, quality concerns are identified, the property is complex or unusual, or regulations require additional review.
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Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Math Concepts
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